March 9 (Bloomberg) -- Naftna Industrija Srbije AD, the
dominant oil company in Serbia, will work with Hungary’s GMV
Energy and EU-Fire Kft. to tap the largely unused geothermal
sources in northern Serbia.

Majority-owned by Russia’s OAO Gazprom Neft, NIS signed a
cooperation agreement with the government of the northern
Vojvodina province and the Hungarian companies to develop a
power plant using geothermal energy and to supply local heating
plants with hot water from the wells, the Belgrade-based company
said in a statement on its website.

The projects “fit into NIS strategy to become an energy
company” by adding power generation to its core businesses, the
vertically integrated oil and gas company said. GMV Energy and
EU-Fire will help with technology and coordinate with the
municipalities in Vojvodina, where heating plants may switch to
geothermal from burning gas and heavy oil.

Gazprom Neft acquired the rights to 72 of 78 geothermal
wells in Vojvodina when it bought a majority stake in NIS from
the Serbian government in 2009.